The lender’s lien lien is less common than the mortgage which can be of different types.
The mortgage is among the most common guarantees for professional credit. It is perfectly suited to professionals wishing to become owners of their professional property. This is a real guarantee, taken on real estate. The mortgage gives the creditor the possibility, in the event of non-payment of debts by the borrower, to have the property seized and to sell it by auction in order to pay himself back. The mortgage is strictly regulated by law and is subject to various taxes.
Different types of mortgages
- Conventional mortgage
The conventional mortgage is the most suitable form for the financing of a professional real estate. The borrower retains the enjoyment of his property and the creditor is covered in case of default.
- Commercial Mortgage
The commercial mortgage involves both a cash loan and commercial fixed assets. The condition is that the property must not be mortgaged.
- Rechargeable mortgage
The rechargeable mortgage is to use an existing mortgage and add a new contract.
The privilege of the lender of deniers (PPD) to guarantee a professional credit
The lien of the lender of money is a guarantee that the creditor may ask for as part of a professional real estate loan. This guarantee allows the creditor to take precedence over any other lender in the event of default by the borrower and resale of the good. The money lender’s privilege functions like the mortgage, except that only property already built or land can benefit from this guarantee.
It allows the creditor to limit his risks in the event of default by the borrower.
It takes the privilege of the lender of money to be effective:
- That the acts be done at a notary
- That the loan deed indicates the amount borrowed for the purchase of the real estate
- That the bill of sale indicates that the transaction was made using the loan